Why Didn't Yahoo! Just Buy Yelp?

Everyone wants to know what you and your friends think, including Yahoo! (NASDAQ: YHOO  ) . The website empire formerly known as the world's largest portal is a little more social today, thanks to its Alike, a ratings app for smart handsets.

Think of it as a more social version of OpenTable. Rate a restaurant in Alike, share with your friends, and the app recommends other places you might enjoy. Alike also allows users to rate bars and shops, according to CNET, which reported on the deal. Terms weren't disclosed.

Should investors cheer? Anything that gives Yahoo! a greater presence in mobile is likely a net win. But we may also be past the point where incremental moves matter, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova. In the video below, he argues that Yahoo! would have done better to make a bid for popular mobile directory service Yelp (NYSE: YELP  ) . Please watch, and then be sure to leave a comment to let us know what you think.

Yahoo!'s bid for a bigger slice of the mobile pie comes at an interesting time.  So many different companies are vying for a seat at the table, that it can be daunting to know how to profit from the extraordinary growth of mobile computing. Fortunately, The Motley Fool answers several of the key questions in a new research report entitled "The Next Trillion-Dollar Revolution." In it, our analyst describes why this seismic shift will dwarf any other technology revolution seen before it, and also names a company he believes to be at the forefront of the trend. Access the report right now by clicking here -- it's free.


Read/Post Comments (3) | Recommend This Article (1)

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  • Report this Comment On February 22, 2013, at 7:04 PM, realroofer wrote:

    Somebody should buy Yelp before the stock crashes. Small business people have had enough of yelp.

    http://realroofers.com/blog/2013/02/18/yelp-reviews-jersey-c...

  • Report this Comment On February 23, 2013, at 12:38 PM, condor2fly wrote:

    A very interesting idea. Yelp has not figured out a sustainable model for monetizing its content. Yelp is the worst advertising deal on the planet. If it wasn't, Yelp wouldn't work so hard to pressure advertisers into 12-month or 6-month contracts. Small businesses sign on out of ignorance or intimidation, believing if they don't advertise, Yelp will filter good reviews and highlight the bad. But these days are coming to an end. Yahoo! could probably do much better at monetizing this content by creating synergies with some of its other content.

  • Report this Comment On February 23, 2013, at 3:39 PM, realroofer wrote:

    I think that Yahoo is snart enough to not buy Yelp. Yahoo needs the revenue from strong cash flow small businesses . Yelp has destroyed a great opportunity. My target for yelp is $1.50 and a sale will require a salvage note attached to resurrect some honesty behind the idea, Basic idea that needs to be implemented properly. The true vengeance will come from the review writers that feel they have been fooled and betrayed. Small business will survive.

    Mark Nejmeh

    realroofers.com/blog

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